"C|Net is reporting that Microsoft Corp. is implementing a new royalty program for the next-generation Xbox that will only allow authorized third-party accessories to work with the Xbox 360. In order to ensure that only Microsoft approved hardware works, the Xbox 360 is supposed to have a new security mechanism that will be available to only those manufacturers who pay the royalty to Microsoft.

The program will also allow Microsoft to obtain some revenues back in an industry that has console manufacturers selling the hardware at a subsidized price, expecting to make a profit on the software.

'The new royalty program could be part of Microsoft's goal of turning a profit with Xbox 360, something the company was not able to do with the prior generation console', said IDC analyst Schelley Olhava.

'Microsoft has made it very clear that it's all about profitability', Olhava added. 'Maybe this is a way they are looking to make additional revenue off of the Xbox.'" [more]

Does this mean there will be bootleg accessories in the VG marketplace?